VMS Industries to Contest ₹19.88 Crore GST Order

VMS Industries Ltd. has received a Goods and Services Tax (GST) demand and penalty order for ₹1988.18 lakh, equivalent to ₹19.88 crore.

This confirmed tax liability represents approximately 6.89% of the company's turnover or net worth for the financial year 2024-25. The order was issued by the Joint Commissioner, Central GST, Bhavnagar, on March 31, 2026, and received by VMS Industries on April 28, 2026. The total amount includes ₹994.09 lakh in tax and ₹994.09 lakh in interest.

The company, which specializes in ship recycling and metal trading, is currently reviewing the order. VMS Industries firmly believes it has sufficient grounds to appeal and intends to contest the demand.

While the company expressed confidence in its appeal process, it noted that the order has no material impact on its current business operations.

For the financial year ended March 31, 2025, VMS Industries reported revenue from operations of ₹28,855.88 Lakhs. Shareholders could face a significant financial obligation if the company's appeal is unsuccessful.

This situation highlights potential regulatory risks for the company. VMS Industries operates in a niche segment, with related companies including Hariyana Ship-Breakers Ltd., Knowledge Marine & Engineering Works Ltd., and Garware Marine Industries Ltd.

Investors will be tracking the company's progress in filing its appeal, any official clarifications on the grounds for the appeal, and the outcome of the legal proceedings.